Bengaluru, March 7 -- Karnataka Chief Minister Siddaramaiah on Friday presented his third consecutive budget with an outlay of Rs.4.48 lakh crore for 2026-27. Karnataka's fiscal deficit and debt-GSDP ratio in 2026-27 are expected to be 2.95% and 24.94% respectively. For the 2025-26 financial year, the fiscal deficit was recorded at 2.9% of GSDP while the debt-to-GSDP ratio stood at 24.91%.

"Within these (central tax devolutions) constraints on revenue availability, the state has carefully prioritised its expenditure to balance growth, welfare and fiscal discipline", Siddaramaiah, who also holds the finance portfolio, said in the assembly while presenting his record 17th budget.

The 2026-27 budget outlay for the state is 13.3% higher tha...